Partners Group, a global private markets firm, has invested $250 million as the sole lead investor in a continuation vehicle established by Avenue Capital Group to acquire its global commercial aviation leasing portfolio, the companies announced Tuesday. The transaction, valued at approximately $360 million, is one of the largest transportation deals by Partners Group's infrastructure secondaries strategy to date.
The portfolio comprises 69 mid-life aviation projects, including narrowbody aircraft, widebody aircraft, and regional jets, assembled over the past decade. The lessee base is diversified across 30 airlines in Asia, Western Europe, and North America, with the majority of cash flows contracted, providing stable and predictable income. The portfolio is structured to maximize asset values at the end of contracts through re-leases, aircraft sales, or disassembly.
Partners Group's investment underscores the growing recognition of aircraft leasing as an infrastructure asset class. The commercial aviation leasing market benefits from structural tailwinds, including a undersupply of new aircraft due to production delays, which increases reliance on mid-life aircraft and spare parts. Additionally, aircraft engines are increasingly used for alternative industrial applications, supporting residual values and tightening supply dynamics.
Jeremy Semble, Head of Infrastructure Partnership Investments Americas at Partners Group, stated: "Aircraft leasing is a growing space within the infrastructure asset class. The Portfolio is asset-heavy with contracted cash flows and high barriers to entry, reflecting significant capex requirements and maintenance needs. This makes it a great fit for our infrastructure secondaries strategy, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential."
Marc Lasry, Co-Founder and CEO of Avenue Capital Group, commented: "This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade."
Partners Group's Infrastructure Partnership Investments business focuses on LP-led portfolios, GP-led investments, and complex situations globally. The firm has completed over 70 infrastructure secondaries transactions since 2006 and is currently raising its latest infrastructure secondaries program. Partners Group was advised by Ropes & Gray, while Avenue Capital Group was advised by Latham & Watkins and Perella Weinberg Partners.
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